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Complete Business Evaluation Package

What does Gro’s Complete Business Evaluation include?

So you have decided to purchase an existing gym, fitness center, health club or wellness facility.  Whether the deal is structured as an asset transaction, a stock transaction or a merger, make sure you know what you are getting into before signing the deal by requesting pertinent detailed information from the seller regarding its business operations and finances.

Gro will do a thorough review of the business’ bank accounts, tax returns, electronic funds transfer draft reports, point of sale draft reports and daily operations. Our team will analyze and review existing membership and personal training sales, while also identifying areas that can be profitable under the right direction. Additionally, Gro will review the lease and help you through negotiations so you don’t get blindsighted on the initial costs.

Whether it is wellness, fitness, medical, or other industry you wish to invest in there are important details to consider. Gro With Us has the knowledge and skills to prepare you for such a large investment. We want to make sure that you benefit from our years of experience and are satisfied with the overall process.

Price Levels Buying Used

Services for Gro to review :

  1. Organization and Good Standing
    1. Company’s articles of incorporation, and all amendments thereto
    2. Company’s bylaws, and all amendments thereto
    3. Company’s minute book, including all minutes and resolutions of shareholders and directors, executive committees, and other governing groups
    4. Company’s organizational chart
    5. Company’s list of shareholders and number of shares held by each
    6. Copies of agreements relating to options, voting trusts, warrants, puts, calls, subscriptions, and convertible securities
    7. Certificate of Good Standing from the Secretary of State of the state where the Company is incorporated
    8. Copies of active status reports in the state of incorporation for the last three years
    9. List of all states where the Company is authorized to do business and annual reports for the last three years
    10. List of all states, provinces, or countries where the Company owns or leases property, maintains employees, or conducts business
    11. List of all of the Company’s assumed names and copies of registrations thereof
  2. Financial Information
    1. Audited financial statements for three years, together with Auditor’s Reports
    2. Most recent unaudited statements, with comparable statements to the prior year
    3. Auditor’s letters and replies for the past five years
    4. Company’s credit report, if available
    5. Any projections, capital budgets and strategic plans
    6. Analyst reports, if available
    7. Schedule of all indebtedness and contingent liabilities
    8. Inventory list
    9. Schedule of accounts receivable
    10. Schedule of accounts payable
    11. Description of depreciation and amortization methods and changes in accounting methods over the past five years
    12. Any analysis of fixed and variable expenses
    13. Any analysis of gross margins
    14. Company’s general ledger
    15. Description of the Company’s internal control procedures
  3. Physical Assets
    1. Schedule of fixed assets and the locations thereof
    2. All U.C.C. filings
    3. All leases of equipment
    4. Schedule of sales and purchases of major capital equipment during last three years
  4. Real Estate
    1. Schedule of the Company’s business locations
    2. Copies of all real estate leases, deeds, mortgages, title policies, surveys, zoning approvals, variances or use permits
  5. Intellectual Property
    1. Schedule of domestic and foreign patents and patent applications
    2. Schedule of trademark and trade names
    3. Schedule of copyrights
    4. Description of important technical know-how
    5. Description of methods used to protect trade secrets and know-how
    6. Any “work for hire” agreements
    7. Schedule and copies of all consulting agreements, agreements regarding inventions, and licenses or assignments of intellectual property to or from the Company
    8. Any patent clearance documents
    9. Schedule and summary of any claims or threatened claims by or against the Company regarding intellectual property
  6. Employees/Benefits
    1. List of employees including positions, current salaries, salaries and bonuses paid during last three years, and years of service
    2. All employment, consulting, nondisclosure, non solicitation or non-competition agreements between the Company and any of its employees
    3. Resumés of key employees
    4. Company’s personnel handbook and a schedule of all employee benefits including holiday, vacation, and sick leave policies
    5. Summary plan descriptions of qualified and non-qualified retirement plans
    6. Copies of collective bargaining agreements, if any
    7. Description of all employee problems within the last three years, including alleged wrongful termination, harassment, and discrimination
    8. Description of any labor disputes, requests for arbitration, or grievance procedures currently pending or settled within the last three years
    9. List and description of benefits of all employee health and welfare insurance policies or self-funded arrangements
    10. Description of worker’s compensation claim history
    11. Description of unemployment insurance claims history
    12. Copies of all stock option and stock purchase plans and a schedule of grants thereunder
  7. Licenses and Permits
    1. Copies of any governmental licenses, permits or consents
    2. Any correspondence or documents relating to any proceedings of any regulatory agency
  8. Environmental Issues
    1. Environmental audits, if any, for each property leased by the Company
    2. Listing of hazardous substances used in the Company’s operations
    3. Description of the Company’s disposal methods
    4. List of environmental permits and licenses
    5. Copies of all correspondence, notices and files related to EPA, state, or local regulatory agencies
    6. List identifying and describing any environmental litigation or investigations
    7. List identifying and describing any known superfund exposure
    8. List identifying and describing any contingent environmental liabilities or continuing indemnification obligations
  9. Taxes (including the last 3 years)
    1. Federal, state, local, and foreign income tax returns
    2. States sales tax returns
    3. Any audit and revenue agency reports
    4. Any tax settlement documents
    5. Employment tax filings
    6. Excise tax filings
    7. Any tax liens
  10. Material Contracts
    1. Schedule of all subsidiary, partnership, or joint venture relationships and obligations with copies of all related agreements
    2. Copies of all contracts between the Company and any officers, directors, 5-percent shareholders or affiliates
    3. All loan agreements, bank financing arrangements, lines of credit, or promissory notes to which the Company is a party
    4. All security agreements, mortgages, indentures, collateral pledges, and similar agreements
    5. All guaranties to which the Company is a party
    6. Any installment sale agreements
    7. Any distribution agreements, sales representative agreements, marketing agreements, and supply agreements
    8. Any letters of intent, contracts, and closing transcripts from any mergers, acquisitions, or divestitures within last five years
    9. Any options and stock purchase agreements involving interests in other companies
    10. Company’s standard quote, purchase order, invoice and warranty forms
    11. All nondisclosure or non-competition agreements to which the Company is a party
    12. All other material contracts
  11. Product or Service Lines
    1. List of all existing products or services and those under development
    2. Copies of all correspondence and reports related to any regulatory approvals or disapprovals of any Company’s products or services
    3. Summary of all complaints or warranty claims
    4. Summary of results of all tests, evaluations, studies, surveys, and other data regarding existing products or services and those under development
  12. Customer Information
    1. Schedule of the Company’s twelve largest customers in terms of sales thereto and a description of sales thereto over a period of two years
    2. Any supply or service agreements
    3. Description or copy of the Company’s purchasing policies
    4. Description or copy of the Company’s credit policy
    5. Schedule of unfilled orders
    6. List and explanation for any major customers lost over the last two years
    7. All surveys and market research reports relevant to the Company or its products or services
    8. The Company’s current advertising programs, marketing plans and budgets, and printed marketing materials
    9. Description of the Company’s major competitors
  13. Litigation
    1. Schedule of all pending litigations
    2. Description of any threatened litigations
    3. Copies of insurance policies possibly providing coverage as to pending or threatened litigations
    4. Documents relating to any injunctions, consent decrees, or settlements to which the Company is a party
    5. List of unsatisfied judgments
  14. Insurance Coverage
    1. Schedule and copies of the Company’s general liability, personal and real estate property, product liability, errors and omissions, key-man, directors and officers, worker’s compensation, and other insurances
    2. Schedule of the Company’s insurance claims history for past three years
  15. Professionals
    1. Schedule of all law firms, accounting firms, consulting firms, and similar professionals engaged by the Company during past five years
  16. Articles and Publicity
    1. Copies of all articles and press releases relating to the Company within the past three years